Japan’s stimulus and a weaker currency may also bring risks. ANZ said a declining yen will hurt overseas suppliers as shipments become more expensive. Net exporters including Malaysia, the Philippines and Indonesia may suffer while net importers of Japanese goods such as Hong Kong, Thailand and Taiwan will probably gain, Eugenia Victorino, an economist at ANZ in Singapore, wrote in a Jan. 10 report.
South Korea is most vulnerable to the currency effect, Credit Suisse said, while Daiwa Capital Markets estimates the country’s technology companies, shipbuilders and automakers, including Kia Motors Corp, may be among the biggest losers.
Gains in the won prompted South Korea’s central bank to announce in November last year that it would tighten limits on currency forward positions at banks.
The Bank of Korea this month lowered its growth forecast for this year, highlighting obstacles to a rebound that include currency appreciation.